The global digital assets industry witnessed another shake up as US President Joe Biden vetoed a congressional resolution which was directly linked to the Securities and Exchange Commission’s (SEC) guidance. It is known as Staff Accounting Bulletin No. 121 (SAB 121). However, it has been heavily criticized by the crypto industry for hampering their ability to work with banks.
Biden chose to Veto
According to reports, President Biden in his veto message stated the need for regulatory measures to protect consumers and investors from risks. The letter mentioned that “SAB 121 reflects considered technical SEC staff views regarding the accounting obligations of certain firms that safeguard crypto-assets.”
It added that by invoking the Congressional Review Act, this Republican-led resolution would inappropriately constrain the SEC’s ability to set forth appropriate guardrails and address future issues.
Biden stated “My Administration will not support measures that jeopardize the well-being of consumers and investors. Appropriate guardrails that protect consumers and investors are necessary to harness the potential benefits and opportunities of crypto-asset innovation.”
He further added, “My Administration is eager to work with Congress to ensure a comprehensive and balanced regulatory framework for digital assets, building on existing authorities, which will promote the responsible development of digital assets and payment innovation and help reinforce United States leadership in the global financial system.”
Stuart Alderoty, Chief Legal Officer of Ripple stated that I’m no political savant, but alienating the 20% of voting Americans that own crypto 5 months before the election seems like a losing move.
What’s next?
It will be crucial to see how the digital assets industry would accept the decision. The cumulative crypto market cap took a marginal hit over the last 24 hours. It now stands at $2.53 trillion. However, its 24 hour trading volume dropped by over 10% to stand at $73.76 billion.
Bitcoin has now printed red indexes on the 7 day metrics as its price hovered around the $67K-$68K price range all over the week. BTC gained more than 60% on the YTD. The biggest crypto is trading at an average price of $67,638, at the press time. Its 24 hour trading volume is down by 8% to stand at $26 billion with a market cap of $1.33 trillion.
However, Ethereum is still up and looking to surge after bagging approval of spot Exchange-Traded Fund (ETF). ETH price is now up by over 65% on YTD. Ether is trading at an average price of $3,783, at the press time.
